Jan 2013 Mid-month highlights of Singapore stock market
Over the first three weeks of 2013, two Catalist stocks have moved to the Mainboard, one stock debuted on Catalist, two ETFs became non-SIP, earnings season has started and the ST Basic Materials Index and ST Telecommunications Index have outperformed the broader market.
The two companies that moved to the Mainboard in January are Interra Resources (5GI) and Swissco Holdings (5FD). Both companies have involvement with the Oil & Gas industry with Interra Resources categorised to the Oil & Gas producers sector by Industrial Classification Benchmark (ICB) and Swissco Holdings categorised to the Industrial Transportation sector by ICB. The FTSE Oil & Gas Index has firmed 3.0% in the month to date.
Sector outperformers in month thus far
Over the first three weeks of January the Straits Times Index (STI) firmed 1.4%. As discussed in Market updates last week the two outperforming FTSE ST sector indices in the month to date have been ST Basic Materials, gaining 17.5% (click here for Market Update) and ST Telecommunications, gaining 5.4% (click here for Market update). For the same period last year, ST Basic Materials was also the outperforming sector, however ST Telecommunications was the most laggard sector.
The average volatility of these two sector indices has differed in the past. The Raw Beta of these two sectors over the past two years is calculated by Bloomberg to be 1.62 for the ST Basic Materials Index and 0.52 for the ST Telecommunications Index. Raw Beta compares the average historical price volatility of a sector index to the volatility of the broader market. Stocks with a low beta, moved on average less than the STI. Stocks with a beta of more than 1.0 saw more volatility in returns than the STI. The two outperforming sectors in the month-to-date barbell two different volatility histories.
The two biggest stocks of the ST Basic Materials Index are Geo Energy (RE4) and Midas Holdings (5EN) with respective full market capitalisations of S$682 million and S$639 million. The two biggest stocks of the ST Telecommunications Index are Singtel (RE4) and Starhub (5EN) with respective full market capitalisations of S$55.6 billion and S$6.6 billion.
In the month thus far, the ST Financials Index, gaining +0.47% and ST Utilities Index, gaining 1.3% are the two laggard sector indices. The FTSE ST Mid Cap Index has gained 3.0% and the FTSE ST Small Cap Index has gained 5.3% in the month-to-date.
Earnings Season has started
Two STI stocks reported quarterly earnings last week, Singapore Press Holdings (T39) and CapitaMall Trust (C38U). This week, Singapore Exchange (S68), Capitaland (C31) and Keppel Corp (BN4) are expected to report. Over the past 12 months, the trailing dividend yield of these three stocks to the Friday close are 3.6% for Singapore Exchange, 2.1% for Capitaland and 3.9% for Keppel Corp. Earnings for Real Estate Investment Trusts (REITs) will be in focus, with 12 REITs expected to report this week. The full schedule for the release of the REITs quarterly reports can be found here.
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Logistic Holdings debuted up 15.2% on Catalist.
On Friday, the first IPO for the 2013, Logistics Holdings Limited (5VI), listed on Catalist. The issue price of Logistics Holdings was S$0.23 and first day close of S$0.265, which represented a first day gain of +15.2%. The sponsor is PrimePartners Corporate Finance Pte Ltd and the Company, together with its subsidiaries, is principally engaged in building construction works as well as supply and installation of furniture/interior fitting-out works in Singapore. Logistics Holdings Limited is categorised by Industrial Classification benchmark to the Heavy Construction subsector. The largest five companies of this particular subsector are United Engineers (U04), Yoma Strategic Holdings (Z59), Guthrie GTS (G33), Boustead Singapore (F9D) and Low Keng Huat (F1E).
CIMB Asset Management’s two ETFs are now non-SIP
The CIMB FTSE ASEAN 40 ETF and CIMB S&P Ethical Asia Pacific Dividend ETF are no longer categorised as Specified Investment Products (SIPs). Click here for more details.
Source: SGX MyGateway